AEPS - Aadhaar Enabled Payment System

About AEPS

Aadhaar Enabled Payment System (AEPS) is a type of payment system that is based on the Unique Identification Number and allows Aadhaar card holders to seamlessly make financial transactions through Aadhaar-based authentication. The AEPS system aims to empower all sections of the society by making financial and banking services available to all through Aadhaar. AEPS is nothing but an Aadhaar-enabled payment system through which you can transfer funds, make payments, deposit cash, make withdrawals, make enquiry about bank balance, etc.

AEPS allows customers to make payments using their Aadhaar number and by providing Aadhaar verification at point of Sale (PoS) or micro ATMs . This is a simple, secure and user-friendly platform for financial transactions. This is another initiative taken by the National Payments Corporation of India (NPCI) to encourage cashless transactions in India. Customers can carry out all transactions through a Business Correspondent (BC) or bank agent through a micro ATM. Except fund transfer, where you need to go to the specific bank BC, for other transactions you can use any bank BC.In order to use AEPS, your bank account must be linked to Aadhaar.

How to use AEPS?

Step 1: Go to a micro ATM or banking correspondent

Step 2: Provide Aadhaar number and bank name

Step 3: Choose the type of transaction you want to make

Step 4: Provide verification through fingerprint/iris scan

Step 5: Collect your receipt

Services Offered by AEPS

Cash Deposit

Payment Transactions (C2B, C2G Transactions)

Balance Enquiry

Cash Withdrawal

Aadhaar to Aadhaar funds transfer

Features & Benefits of AEPS

Easy to use

Safe and secure payment method

Interoperable across various banks

Encourages financial inclusion and serves the underbanked sections of society

Through AEPS, all bank account holders will be able to access their bank accounts through Aadhaar authentication

With AEPS, the only information required to initiate a transaction is Aadhaar number and biometric information

AEPS facilitates disbursements of Government schemes like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies using Aadhaar authentication.

How Does AEPS Work?

The AEPS machine works like a Point of Sale (POS) machine. Instead of a debit/credit card pin, the merchant will have to key in the customer’s Aadhaar number and authenticate the transaction using the customer’s biometric data.

You will require the following formation to carry out an AEPS transaction:

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.